Forbes has an article with a set of interesting statistics from the National Association of Seed and Venture Funds showing that venture capital is very hard to come by these days:
- 90% of already-funded companies are unable to secure follow on venture funding
- 60% of early stage funds are making new investments at this time
- 75% of the venture backed funds cannot get bank financing
Our experience echos this data. From what we are seeing, it is hard to secure early stage financing of any kind right now. And B or C (or later) rounds are really hard to come by.
But early stage companies with strong value propositions and proven management teams can get funding.
We are working with several firms that have either recently been funded or will likely get funding offers in the near future. No one is real happy with the valuations and terms, but they are getting funded.